Alpha
InvestingA measure of an investment's performance relative to a benchmark index — positive alpha means outperformance.
Example
Example: Consider an investor building a $100,000 portfolio. Alpha — a measure of an investment's performance relative to a benchmark index — positive — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.